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Communication  t 
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SENATE,  December   21,  1864.— Referred  to  the  Committee  on 
Finance  and  ordered  to  be  printed.  • 

[By  President  op  Senate. 


COMMXJNICi^TION 

From  the  Secretary  of  the  Treasury,  in  responpe  to  a  resolution  of 

the  Senate  calling  for  certain  information  in  relation  to 

the  Mint  and  Assay  Office  at  Charlotte,  N.  C. 

Treasury  Department,  C.  S.  A.,  ) 
Richmond,  Dec.  19,  1864.        J 

Hon.  Alexander  H.  Stephens, 

President  of  the  C.  S.  Senate  : 

Sir  :  I  have  the  honor  to  submit  to  the  Senate  the  following  re- 
ply to  the  resolution  adapted  by  them  on  the  r2th  inst. 

The  resolution  is  in  these  words : 

"  Besolved,  That  the  Secretary  of  the  Treasury  be  instructed  to 
inform  the  Senate  what  di-»po9ition  han  been  made  of  the  machi- 
nery, imj)lemci.tH  and  other  apfiendagcs  of  the  Miut  and  Assay 
Office  at  Charlotte.  North  Carolina  ;  and  whether,  in  his  opinion, 
the  work  of  coining  and  assaying  gold  and  silver,  may  not  be  re- 
sumed thereat  without  further  dolay." 

The  machinery,  implements  and  other  appendages  of  the  Mint 
and  At^say  Olhce  at  Charlotte,  and  the  occupation  and  use  of  the 
building  were  surrendered  to  the  Navy  Department,  on  condition 
that  tbey  should  be  restored  at  a  week's  notice,  whe  ever  required. 
This  was  done  by  my  predecessor,  witk  a  view  to  j)romote  the  con- 
venience of  another  Department  of  the  government,  it  being  at  that 
time,  apparently  the  settled  policy  of  Congress,  to  suppend  the  op- 
erations of  the  several  mints  in  the  Confederacy.  By  the  act  ap- 
proved May  14,  1861,  it  is  provided  : 

"  Skctkik  1.  That  from  and  after  the  1st  day  of  June,  1 86 1,  the 
operations  of.  the  several  m  nts  in  the  Confederate  States  be  sus- 
pended; and  th.it  all  officers  therein  shall  cease  to  exercise  their 
fun-tions.  or  to  receive  any  salaries,  and  that  all  monevs  and  bullion 
in  the  hands  of  any  officer,  shall  forthwith  be  transferred  to  the 
Treasurer  of  the  Confederate  States." 

In  a  letter  dated  June  12,  1861,  addressed  by  the  Secretary  of 
the  Treasury  to  Jan  es  \V .  Osborne  and  W  Johnston,  Raleigh,  the 
following  explanation  is  given  of  the  policy  of  the  government : 


"  Your  letter  of  enquiry  concerning  the  policy  of  the  Confeder- 
ate Government,  as  to  the  mint  at  Charlotte,  ha.s  hcen  duly  received. 
1  have  as  vet  seen  no  notice  that  ;he  establishment  has  been  turn- 
ed over,  and  therefore  cannot  speak  with  any  authority.  The  other 
mints  have  been  closed  by  act  of  Congress,  and  1  presume  the  same 
policy  will  bp  purpuod  throui^hont. 

^'  We  are  endeavorintr  to  administer  the  i^ovornmcnt  upon  the 
]'rincipic  that  each  branch  of  industry  ^hall  bear  its  own  Imrthens, 
and  not  tax  another  to  pay  i's  <»wn  expense?.  The  principle,  ap- 
plied to  the  mints,  would  make  the  establishment  place  its  charges 
on  such  a  basis  as  to  par  all  its  expenses;  and  if  its  })asiness  could 
not  rai^e  enough  for  tliis  purpose,  it  must  be  discontinued 

"  1  have  supposed  tiiat  the  sma'ler  mints  could  not  be  made  to 
pay  the  expense  ol  coinage,  but  that  they  might  pav  for  assaying ; 
and,  possit)ly.  ilie  groat  purpose  dtsire(l  by  the  miners  might  be 
accomplished  in  that  way.  The  a-isay  would  enable  the  gold  to 
pass  at  the  banks,  and  with  the  mei  chants,  and  thus  meet  the  wants 
of  the  noighhorhood." 

At  a  subsequent  date,  namely,  on  the  Gth  Augu'^st,  1861,  the  Sec- 
retary addressed  the  following  letter  to  Hon.  R.  W.  Barnwell, 
Chairman  of  the  Committee  on  Finance  of  the  Senate  : 

"  I  have  the  hon(!r  to  report  to  you,  that  before  the  mint  at  Dah- 
lonera  was  cl<»sed.  ■  applied  to  the  Suf»erintendeiit  for  an  estimate 
of  tho  expense  of  keeping  the  «ame  open  as    an  Assay  office  :  an5 
wfisinfoimed  ihat  il'.o  expense  would  leacli  tiiC  sum  of 
which  was  oniy  less  than  the  amount  es  imated  for    the 

mint  Ut/on  the  n?.ion  of  North  Carolina  wich  our  Confederacy,  I 
made  the  smne  enciuiry  as  lo  the  mint  at  Chartotte,  with  similar 
results.  The^e  enrpiiries  exhibit  ray  opinion  th;it  I  considered  it 
desirable  to  use  the  mints  as  As3-«y  offices;  but  the  expcn;e  proved 
so  cor  side^able.  that  ii  did  not  appear  to  me  that  it  could  be  defray- 
ed upon  the  principle  adopted  by  otir  government,  raniely,  from 
the  industiy  l)enelir,tcd  by  the  exoenditure. 

The  proposal  made  in  the  documents  submitted  to  Congress, 
overcomes  that  difficulty;  and  I  see  no  objection  to  the  proposal, 
if  ];roper  measuies  are  taken  to  prevent  the  pu])lic  treasury  from 
being  made  chargeable  for  any  failure  in  the  plan. 

There  is  a  material  diiTcronce  between  nn  Assay  olliceand  a  mint 
for  coinatie.  The  latter  is  one  of  the  most  important  functions  of 
government,  the  former  is  widiin  the  scope  of  private  enterprise. 

I  have  given  some  coneideration  to  the  sul'ject  of  coin;  ge.  I 
think  it  can  be  shown  that,  as  heretofore  carried  on  by  the  old  go- 
vernment, it  is  a  waste  of  means  and  money.  Of  all  the  coinage 
issued,  a  mere  fraction  remains  The  pieces  are  mostly  exported, 
and  reeoined ;  and  the  same  process  is  annually  rep  afccd.  with  no 
benelit  to  the  country.  At  the  proper  time,  it,  is  my  intention  to 
advise  that,  instead  of  coins,  the  gold  shall  be  capt  in  bars,  and 
marked,  as  they  are  in  the  Bank  of  England  ;  and  that  only  that 
portion  be  coined  which  the  wants  of  the  country  will  call  for. 

I  also  think  that  in  fixing  a  coin  for  our  country,  we  should  start 


with  a  new  mint,  which  would  assimilate  our  coins  to  those  of  France , 
and  relieve  some  of  the  confusion  which  prevails  on  this  subject. 
It  can  be  shown  that 'with  such  arrangements,  it  will  be  best  to  con- 
centrate all  coinages  at  our  mint. 

These  considerations  show  that  the  question  of  coinage  had  bet- 
ber  be  postponed  for  the  present.  The  additional  expense  of  coin- 
age it  is  true,  is  proposed  to  be  defrayed  bj  the  petitioners  from 
Charlotte;  bit  the  reason  which  induces  them  to  make  the  offer,  is 
the  present  difference  between  gold  and  bank  notes— nearly  ten 
per  cent.  That  difference  is  temporary,  and  in  the  ordinary  course 
of  things,  the  seignorage  required  for  a  mint  at  Charlotte,  would 
certainly  drive  away  the  gold,  and  break  up  the  mint. 

But  for  au  Assay  Office,  the  outfit  and  arrangements  are  less  ex- 
pensive, and  an  experiment  niitrht  very  well  be  made.  The  public 
may  assist  tiie  enterprise  by  allowing  to  tlie  As^ayer,  the  use  of  the 
mint  establishment  and  tools,  ard  this  is  as  much  as  the  petitioners 
ask.  But  to  prevent  any  recourse  back  upon  tlie  Treasury,  it 
would  be  proper  to  provide  that  the  compensation  of  the  As-^ayer 
should  arise  entirely  from  his  charges,  and  that  the  whole  expense 
of  the  establirfhmont  is  at  tiis  risk 

It  is  but  fair  to  add.  that  ihe  most  urgent  representations  are 
made  from  the  War  Department,  of  the  necessity  of  retaining  all 
the  Nitre  acid  at  each  establishment,  there  being  no  mode  of  pro- 
curing another  supply.  All  other  materials  could  be  allowed  to 
the  establishment  at  a  valuation. 

Desiring  to  save  the  Committee  all  po.s3'ble  labor,  1  have  taken 
the  liberty  of  submitting  the  draft  of  a  Bill,  which  will  aid  their 
action,  in  case  they  think  it  expedient  to  establish  Assay  offices.'" 

No  action  appears  to  have  been  taken  by  Congress,  at  that  time 
or  subsetiuently,  indicating  a  oliange  of  palicy,  or  the  belief  that 
the  expenses  of  a  mint,  u.-zder  the  existing  circumstances  of  the 
country,  could  be  defrayed  from  the  compensation  to  be  received 
from  tlie  public  for  coining  and  a^'saying. 

I  have  no  reasons  for  doubting  the  correctness  of  the  opinions 
hitherto  entertained,  or  for  supposing  that  such  an  establishment 
could  be  made  to  pay  its  own  expenses.  Besides,  even  if  the  ope- 
rations were  confined  to  assaying  only,  a  certain  capital  would  be 
necessary  to  carry  on  the  business.  Persons  l)ringing  the  precious 
metals  to  tho  mint,  would  expect  to  be  paid  the  value  thereof,  as 
soon  as  the  fineness  and  weight  were  determined  :  and  as  at  present 
advised,  I  do  not  perceive  any  public  l)enefit  to  arise  from  coin- 
ing a^d  assaying,  of  sufficient  iapoitancc  to  outweigh  the  consid- 
erations that  have  hitherto  determinf^d  the  policy  of  the  govern- 
naent,  in  favor  of  the  inactivitv  of  these  establishments. 

Verv  respectfully, 

G.  A.  TRENHOLM, 
Secretary  of  Treasury. 


'7^> 


C. 


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